Department of the Treasury
Internal Revenue Service
Contents
What’s New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Publication 521
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Cat. No. 15040E
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Moving
Expenses
Who Can Deduct Moving Expenses . . . . . . . . . . . . 2
Move Related to Start of Work . . . . . . . . . . . . . . . . 3
Distance Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Time Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Retirees or Survivors Who Move to the
United States . . . . . . . . . . . . . . . . . . . . . . . . 7
For use in preparing
Deductible Moving Expenses . . . . . . . . . . . . . . . . . 7
Moves to Locations in the United States . . . . . . . . . 8
Moves to Locations Outside the United
States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2011 Returns
Nondeductible Expenses . . . . . . . . . . . . . . . . . . . .
9
Reimbursements . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Types of Reimbursement Plans . . . . . . . . . . . . . . . 9
Tax Withholding and Estimated Tax . . . . . . . . . . . 11
How and When To Report . . . . . . . . . . . . . . . . . . . 11
Form 3903 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
When To Deduct Expenses . . . . . . . . . . . . . . . . . 12
Illustrated Example . . . . . . . . . . . . . . . . . . . . . . . . . 13
Members of the Armed Forces . . . . . . . . . . . . . . . . 15
How To Get Tax Help . . . . . . . . . . . . . . . . . . . . . . . 15
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
What’s New
Standard mileage rate. For 2011, the standard mileage
rate for using your vehicle to move to a new home is 19
cents per mile for miles driven during the period from
January 1 to June 30, 2011, and 23.5 cents per mile for
miles driven during the period from July 1 to December 31,
2011. See Travel by car under Deductible Moving Expenses.
Future developments. The IRS has created a page on
IRS.gov for information about Publication 521, at www.irs.
gov/pub521. Information about any future developments
affecting Publication 521 (such as legislation enacted after
we release it) will be posted on that page.
Get forms and other information
faster and easier by:
Internet IRS.gov
Dec 01, 2011
Reminders
Change of address. If you change your mailing address,
be sure to notify the IRS using Form 8822, Change of
Address. Mail it to the Internal Revenue Service Center for
your old address. Addresses for the service centers are on
the back of the form. If you change your business address,
use Form 8822-B, Change of Address—Business.
Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for
Missing and Exploited Children. Photographs of missing
children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help
bring these children home by looking at the photographs
and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
Introduction
This publication explains the deduction of certain expenses of moving to a new home because you changed
job locations or started a new job. It includes the following
topics.
•
•
•
•
Who can deduct moving expenses.
What moving expenses are deductible.
What moving expenses are not deductible.
How a reimbursement affects your moving expense
deduction.
• How and when to report moving expenses.
• Special rules for members of the Armed Forces.
Form 3903, Moving Expenses, is used to claim the moving
expense deduction. An example of how to report your
moving expenses, including a filled-in Form 3903, is shown
near the end of the publication.
You may be able to deduct moving expenses whether
you are self-employed or an employee. Your expenses
generally must be related to starting work at your new job
location. However, certain retirees and survivors may qualify to claim the deduction even though they are not starting
work at a new job location. See Who Can Deduct Moving
Expenses.
Recordkeeping. It is important to maintain an accurate
record of expenses you paid to move. You should save
items such as receipts, bills, cancelled checks, credit card
statements, and mileage logs. Also, you should save your
Form W-2 and statements of reimbursement from your
employer.
Comments and suggestions. We welcome your comments about this publication and your suggestions for
future editions.
You can write to us at the following address:
Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
We respond to many letters by telephone. Therefore, it
would be helpful if you would include your daytime phone
number, including the area code, in your correspondence.
Page 2
You can email us at taxforms@irs.gov. Please put “Publications Comment” on the subject line. You can also send
us comments from www.irs.gov/formspubs/. Select “Comment on Tax Forms and Publications” under “Information
about.”
Although we cannot respond individually to each comment received, we do appreciate your feedback and will
consider your comments as we revise our tax products.
Ordering forms and publications. Visit www.irs.gov/
formspubs/ to download forms and publications, call
1-800-829-3676, or write to the address below and receive
a response within 10 days after your request is received.
Internal Revenue Service
1201 N. Mitsubishi Motorway
Bloomington, IL 61705-6613
Tax questions. If you have a tax question, check the
information available on IRS.gov or call 1-800-829-1040.
We cannot answer tax questions sent to either of the
above addresses.
Useful Items
You may want to see:
Publication
❏ 3
Armed Forces’ Tax Guide
Forms (and Instructions)
❏ 1040 U.S. Individual Income Tax Return
❏ 1040X Amended U.S. Individual Income Tax
Return
❏ 3903 Moving Expenses
❏ 8822 Change of Address
See How To Get Tax Help, near the end of this publication, for information about getting the publications and the
forms listed above.
Who Can Deduct Moving
Expenses
You can deduct your moving expenses if you meet all three
of the following requirements.
• Your move is closely related to the start of work.
• You meet the distance test.
• You meet the time test.
After you have read these rules, you may want to use
Figure B to help you decide if you can deduct your moving
expenses.
Retirees, survivors, and Armed Forces members. Different rules may apply if you are a member of the Armed
Forces or a retiree or survivor moving to the United States.
These rules are discussed later in this publication.
Publication 521 (2011)
• You will spend less time or money commuting from
Move Related to Start of Work
your new home to your new job location.
Your move must be closely related, both in time and in
place, to the start of work at your new job location.
Closely related in time. In most cases, you can consider
moving expenses incurred within 1 year from the date you
first reported to work at the new location as closely related
in time to the start of work. It is not necessary that you
arrange to work before moving to a new location, as long
as you actually go to work in that location.
If you do not move within 1 year of the date you begin
work, you ordinarily cannot deduct the expenses unless
you can show that circumstances existed that prevented
the move within that time.
Example. Your family moved more than a year after
you started work at a new location. You delayed the move
for 18 months to allow your child to complete high school.
You can deduct your moving expenses.
Closely related in place. You can generally consider
your move closely related in place to the start of work if the
distance from your new home to the new job location is not
more than the distance from your former home to the new
job location. If your move does not meet this requirement,
you may still be able to deduct moving expenses if you can
show that:
• You are required to live at your new home as a
condition of your employment, or
Home defined. Your home means your main home
(residence). It can be a house, apartment, condominium,
houseboat, house trailer, or similar dwelling. It does not
include other homes owned or kept up by you or members
of your family. It also does not include a seasonal home,
such as a summer beach cottage. Your former home
means your home before you left for your new job location.
Your new home means your home within the area of your
new job location.
Retirees or survivors. You may be able to deduct the
expenses of moving to the United States or its possessions
even though the move is not related to the start of work at a
new job location. You must have worked outside the
United States or be a survivor of someone who did. See
Retirees or Survivors Who Move to the United States,
later.
Distance Test
Your move will meet the distance test if your new main job
location is at least 50 miles farther from your former home
than your old main job location was from your former
home. For example, if your old main job location was 3
miles from your former home, your new main job location
must be at least 53 miles from that former home. You can
use Worksheet 1 to see if you meet this test.
Figure A. Illustration of Distance Test
3
miles
Old
main job
location
58
miles
DISTANCE TEST IS MET
Your new main job location is at
least 50 miles farther from your
former residence than your old
main job location was.
Former
residence
New
main job location
38
miles
DISTANCE TEST IS NOT MET
Your new main job location is
not at least 50 miles farther from
your former residence than your
old main job location was.
New
main job
location
Publication 521 (2011)
Page 3
Worksheet 1. Distance Test
1.
2.
3.
4.
Note. Members of the Armed Forces may not have to meet this test. See Members of the
Armed Forces.
Enter the number of miles from your old home to your new workplace . . . . . . . . . . . . . . . . 1.
Enter the number of miles from your old home to your old workplace . . . . . . . . . . . . . . . . . 2.
Subtract line 2 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
Is line 3 at least 50 miles?
M Yes. You meet this test.
M No. You do not meet this test. You cannot deduct your moving expenses.
The distance between a job location and your home is
the shortest of the more commonly traveled routes between them. The distance test considers only the location
of your former home. It does not take into account the
location of your new home. See Figure A, earlier.
Example. You moved to a new home less than 50 miles
from your former home because you changed main job
locations. Your old main job location was 3 miles from your
former home. Your new main job location is 60 miles from
that home. Because your new main job location is 57 miles
farther from your former home than the distance from your
former home to your old main job location, you meet the
distance test.
First job or return to full-time work. If you go to work full
time for the first time, your place of work must be at least 50
miles from your former home to meet the distance test.
If you go back to full-time work after a substantial period
of part-time work or unemployment, your place of work
also must be at least 50 miles from your former home.
Armed Forces. If you are in the Armed Forces and you
moved because of a permanent change of station, you do
not have to meet the distance test. See Members of the
Armed Forces, later.
Main job location. Your main job location is usually the
place where you spend most of your working time. This
could be your office, plant, store, shop, or other location. If
there is no one place where you spend most of your
working time, your main job location is the place where
your work is centered, such as where you report for work or
are otherwise required to “base” your work.
miles
miles
miles
Union members. If you work for several employers on
a short-term basis and you get work under a union hall
system (such as a construction or building trades worker),
your main job location is the union hall.
More than one job. If you have more than one job at
any time, your main job location depends on the facts in
each case. The more important factors to be considered
are:
• The total time you spend at each place,
• The amount of work you do at each place, and
• How much money you earn at each place.
Time Test
To deduct your moving expenses, you also must meet one
of the following two time tests.
• The time test for employees.
• The time test for self-employed persons.
Both of these tests are explained below. See Table 1,
below, for a summary of these tests.
You can deduct your moving expenses before you meet
either of the time tests. See Time Test Not Yet Met, later.
Time Test for Employees
If you are an employee, you must work full time for at least
39 weeks during the first 12 months after you arrive in the
general area of your new job location (39-week test).
Table 1. Satisfying the Time Test for Employees and Self-Employed Persons
IF you are...
THEN you satisfy the time test by meeting the...
an employee
39-week test for employees.
self-employed
78-week test for self-employed persons.
both self-employed and an employee at the same time
78-week test for a self-employed person or the 39-week
test for an employee. Your principal place of work
determines which test applies.
both self-employed and an employee, but unable to satisfy
the 39-week test for employees
78-week test for self-employed persons.
Page 4
Publication 521 (2011)
Figure B. Can You Deduct Expenses for a Non-Military Move Within the United States?1
Start Here:
Was your move closely related to a
new or changed job location?2
No
䊳
䊳
Yes
You cannot
deduct your
moving
expenses
䊱
䊲
Is your new main job location at least
50 miles farther from your FORMER
HOME than your old main job location
was?
䊱
䊱
No
Yes
䊲
No
No
Are you an employee?
䊳 Are you self-employed?
Yes
No
Yes
䊲
䊲
Did you or will you work full time as an
employee for at least 39 weeks in the
first 12 months after you arrived in the
new area?3,4
Did you or will you work full time as an
employee or a self-employed person
for at least 78 weeks in the first 24
months (which includes 39 weeks in
the first 12 months) after you arrived in
the new area?
Yes
䊲
No
Yes
You may be able to deduct your
䊴
moving expenses
䊲
䊳
1
Military persons should see Members of the Armed Forces, later, for special rules that apply to them.
Your move must be closely related to the start of work at your new job location. See Move Related to Start of Work, earlier.
3
If you deduct expenses and do not meet this test later, you must either file an amended tax return or report your moving expense deduction as other income.
See Time test not yet met, later.
4
If you became self-employed during the first 12 months, answer YES if your time as a full-time employee added to your time as a self-employed person equals
or will equal at least 78 weeks in the first 24 months (including 39 weeks in the first 12 months) after you arrived in the new area.
2
Full-time employment depends on what is usual for your
type of work in your area.
For purposes of this test, the following four rules apply.
• You count only your full-time work as an employee,
not any work you do as a self-employed person.
• You do not have to work for the same employer for
all 39 weeks.
• You do not have to work 39 weeks in a row.
• You must work full time within the same general
commuting area for all 39 weeks.
Temporary absence from work. You are considered to
have worked full time during any week you are temporarily
absent from work because of illness, strikes, lockouts,
layoffs, natural disasters, or similar causes. You are also
considered to have worked full time during any week you
Publication 521 (2011)
are absent from work for leave or vacation provided for in
your work contract or agreement.
Seasonal work. If your work is seasonal, you are considered to be working full time during the off-season only if
your work contract or agreement covers an off-season
period of less than 6 months. For example, a school
teacher on a 12-month contract who teaches on a full-time
basis for more than 6 months is considered to have worked
full time for the entire 12 months.
Time Test for Self-Employed Persons
If you are self-employed, you must work full time for at least
39 weeks during the first 12 months and for a total of at
least 78 weeks during the first 24 months after you arrive in
the general area of your new job location (78-week test).
For purposes of the time test for self-employed persons,
the following three rules apply.
Page 5
• You count any full-time work you do either as an
employee or as a self-employed person.
• You do not have to work for the same employer or
be self-employed in the same trade or business for
the 78 weeks.
• You must work within the same general commuting
area for all 78 weeks.
Example. You are a self-employed accountant who
moves from Atlanta to New York City, and begin to work
there on December 1, 2011. You pay moving expenses in
2011 and 2012 in connection with this move. On April 15,
2012, when you file your income tax return for the year
2011, you have been performing services as a
self-employed individual on a full-time basis in New York
City for approximately 20 weeks. Although you have not
satisfied the 78-week employment condition at this time,
you can deduct your 2011 moving expenses on your 2011
income tax return as there is still sufficient time remaining
before December 1, 2013, to satisfy such condition. You
can deduct any moving expenses you pay in 2012 on your
2012 income tax return even if you have not met the
78-week test. You have until December 1, 2013, to satisfy
this requirement.
Self-employment. You are self-employed if you work as
the sole owner of an unincorporated business or as a
partner in a partnership carrying on a business. You are
not considered self-employed if you are semi-retired, are a
part-time student, or work only a few hours each week.
Full-time work. You can count only those weeks during
which you work full time as a week of work. Whether you
work full time during any week depends on what is usual
for your type of work in your area. For example, you are a
self-employed dentist and maintain office hours 4 days a
week. You are considered to perform services full time if
maintaining office hours 4 days a week is not unusual for
other self-employed dentists in your area.
Temporary absence from work. You are considered
to be self-employed on a full-time basis during any week
you are temporarily absent from work because of illness,
strikes, natural disasters, or similar causes.
Seasonal trade or business. If your trade or business
is seasonal, the off-season weeks when no work is required or available may be counted as weeks during which
you worked full time. The off-season must be less than 6
months and you must work full time before and after the
off-season.
Example. You own and operate a motel at a beach
resort. The motel is closed for 5 months during the
off-season. You work full time as the operator of the motel
before and after the off-season. You are considered
self-employed on a full-time basis during the weeks of the
off-season.
If you were both an employee and self-employed, see
Table 1, earlier, for the requirements.
Page 6
Example. Justin quit his job and moved from the east
coast to the west coast to begin a full-time job as a
cabinet-maker for C and L Cabinet Shop. He generally
worked at the shop about 40 hours each week. Shortly
after the move, Justin also began operating a cabinet-installation business from his home for several hours
each afternoon and all day on weekends. Because Justin’s
principal place of business is the cabinet shop, he can
satisfy the time test by meeting the 39-week test.
If Justin is unable to satisfy the requirements of the
39-week test during the 12-month period immediately following his arrival in the general location of his new principal
place of work, he can satisfy the 78-week test.
Joint Return
If you are married, file a joint return, and both you and your
spouse work full-time, either of you can satisfy the full-time
work test. However, you cannot add the weeks your
spouse worked to the weeks you worked to satisfy that
test.
Time Test Not Yet Met
You can deduct your moving expenses on your 2011 tax
return even though you have not met the time test by the
date your 2011 return is due. You can do this if you expect
to meet the 39-week test in 2012 or the 78-week test in
2012 or 2013.
If you do not deduct your moving expenses on your
2011 return, and you later meet the time test, you can file
an amended return for 2011 to take the deduction. See
When To Deduct Expenses later, for more details.
Failure to meet the time test. If you deduct moving
expenses but do not meet the time test in 2012 or 2013,
you must either:
• Report your moving expense deduction as other income on your Form 1040 for the year you cannot
meet the test, or
• Use Form 1040X to amend your 2011 return, figur-
ing your tax without the moving expense deduction.
Example. You arrive in the general area of your new job
location, as an employee, on September 15, 2011. You
deduct your moving expenses on your 2011 return, the
year of the move, even though you have not yet met the
time test by the date your return is due. If you do not meet
the 39-week test during the 12-month period following your
arrival in the general area of your new job location, you
must either:
• Report your moving expense deduction as other income on your Form 1040 for 2012, or
• Use Form 1040X to amend your 2011 return, figur-
ing your tax without the moving expense deduction.
Publication 521 (2011)
Exceptions to the Time Test
• Whether you receive retirement payments from a
You do not have to meet the time test if one of the following
applies.
• The length of time before you return to full-time
• You are in the Armed Forces and you moved be-
cause of a permanent change of station. See Members of the Armed Forces, later.
• Your main job location was outside the United States
and you moved to the United States because you
retired. See Retirees or Survivors Who Move to the
United States, later.
• You are the survivor of a person whose main job
location at the time of death was outside the United
States. See Retirees or Survivors Who Move to the
United States, later.
• Your job at the new location ends because of death
or disability.
• You are transferred for your employer’s benefit or
laid off for a reason other than willful misconduct.
For this exception, you must have obtained full-time
employment and you must have expected to meet
the test at the time you started the job.
Retirees or Survivors Who Move to
the United States
If you are a retiree who was working abroad or a survivor of
a decedent who was working abroad and you move to the
United States or one of its possessions, you do not have to
meet the time test, discussed earlier. However, you must
meet the requirements discussed below under Retirees
who were working abroad or Survivors of decedents who
were working abroad.
!
CAUTION
If you are living in the United States, retire, and
then move and remain retired, you cannot claim a
moving expense deduction for that move.
United States defined. For this section of this publication, the term “United States” includes the possessions of
the United States.
Retirees who were working abroad. You can deduct
moving expenses for a move to a new home in the United
States when you permanently retire. However, both your
former main job location and your former home must have
been outside the United States.
Permanently retired. You are considered permanently
retired when you cease gainful full-time employment or
self-employment. If, at the time you retire, you intend your
retirement to be permanent, you will be considered retired
even though you later return to work. Your intention to
retire permanently may be determined by:
• Your age and health,
• The customary retirement age for people who do
similar work,
Publication 521 (2011)
pension or retirement fund, and
work.
Decedents. Qualified deductible moving expenses are
allowed on a final return (Form 1040 or 1040NR) when a
taxpayer has moved and dies within the same calendar
year. The personal representative filing on behalf of that
taxpayer should complete and attach Form 3903 to the
final return.
A personal representative can be an executor, administrator, or anyone who is in charge of the deceased person’s property. For more information, see Publication 559,
Survivors, Executors, and Administrators.
Survivors of decedents who were working abroad. If
you are the spouse or the dependent of a person whose
main job location at the time of death was outside the
United States, you can deduct moving expenses if the
following five requirements are met.
• The move is to a home in the United States.
• The move begins within 6 months after the decedent’s death. (When a move begins is described
below.)
• The move is from the decedent’s former home.
• The decedent’s former home was outside the United
States.
• The decedent’s former home was also your home.
When a move begins. A move begins when one of the
following events occurs.
• You contract for your household goods and personal
effects to be moved to your home in the United
States, but only if the move is completed within a
reasonable time.
• Your household goods and personal effects are
packed and on the way to your home in the United
States.
• You leave your former home to travel to your new
home in the United States.
Deductible Moving Expenses
If you meet the requirements discussed earlier under Who
Can Deduct Moving Expenses, you can deduct the reasonable expenses of:
• Moving your household goods and personal effects
(including in-transit or foreign-move storage expenses), and
• Traveling (including lodging but not meals) to your
new home.
Page 7
You cannot deduct any expenses for meals.
!
CAUTION
Reasonable expenses. You can deduct only those expenses that are reasonable for the circumstances of your
move. For example, the cost of traveling from your former
home to your new one should be by the shortest, most
direct route available by conventional transportation. If
during your trip to your new home, you stop over, or make
side trips for sightseeing, the additional expenses for your
stopover or side trips are not deductible as moving expenses.
Example. Beth’s employer transferred her from Boston, Massachusetts, to Buffalo, New York. On her way to
Buffalo, Beth drove into Canada to visit the Toronto Zoo.
Since Beth’s excursion into Canada was away from the
usual Boston-Buffalo route, the expenses paid or incurred
for the excursion are not deductible. Beth can only deduct
what it would have cost to drive directly from Boston to
Buffalo. Likewise, Beth cannot deduct any expenses, such
as the cost of a hotel room, caused by the delay for
sightseeing.
Travel by car. If you use your car to take yourself, members of your household, or your personal effects to your
new home, you can figure your expenses by deducting
either:
• Your actual expenses, such as the amount you pay
for gas and oil for your car, if you keep an accurate
record of each expense, or
• The standard mileage rate of 19 cents per mile for
miles driven during the period from January 1 to
June 30, 2011, and 23.5 cents per mile for miles
driven during the period from July 1 to December 31,
2011.
Whether you use actual expenses or the standard mileage
rate to figure your expenses, you can deduct the parking
fees and tolls you pay to move. You cannot deduct any part
of general repairs, general maintenance, insurance, or
depreciation for your car.
Member of your household. You can deduct moving
expenses you pay for yourself and members of your
household. A member of your household is anyone who
has both your former and new home as his or her home. It
does not include a tenant or employee, unless that person
is your dependent.
Moves to Locations in the United
States
If you meet the requirements under Who Can Deduct
Moving Expenses, earlier, you can deduct expenses for a
move to the area of a new main job location within the
United States or its possessions. Your move may be from
one U.S. location to another or from a foreign country to the
United States.
Page 8
Household goods and personal effects. You can deduct the cost of packing, crating, and transporting your
household goods and personal effects and those of the
members of your household from your former home to your
new home. For purposes of moving expenses, the term
“personal effects” includes, but is not limited to, movable
personal property that the taxpayer owns and frequently
uses.
If you use your own car to move your things, see Travel
by car, earlier.
You can deduct any costs of connecting or disconnecting utilities required because you are moving your
household goods, appliances, or personal effects.
You can deduct the cost of shipping your car and your
household pets to your new home.
You can deduct the cost of moving your household
goods and personal effects from a place other than your
former home. Your deduction is limited to the amount it
would have cost to move them from your former home.
Example. Paul Brown has been living and working in
North Carolina for the last 4 years. Because he has been
renting a small apartment, he stored some furniture at his
parents’ home in Georgia. Paul got a job in Washington,
DC. It cost him $900 to move the furniture from his North
Carolina apartment to Washington and $3,000 to move the
stored furniture from Georgia to Washington. It would have
cost $1,800 to ship the stored furniture from North Carolina
to Washington. He can deduct only $1,800 of the $3,000
he paid. The amount he can deduct for moving his furniture
is $2,700 ($900 + $1,800).
!
You cannot deduct the cost of moving furniture
you buy on the way to your new home.
CAUTION
Storage expenses. You can include the cost of storing
and insuring household goods and personal effects within
any period of 30 consecutive days after the day your things
are moved from your former home and before they are
delivered to your new home.
Travel expenses. You can deduct the cost of transportation and lodging for yourself and members of your household while traveling from your former home to your new
home. This includes expenses for the day you arrive.
You can include any lodging expenses you had in the
area of your former home within one day after you could no
longer live in your former home because your furniture had
been moved.
The members of your household do not have to travel
together or at the same time. However, you can only
deduct expenses for one trip per person. If you use your
own car, see Travel by car, earlier.
Example. In February 2011, Josh and Robyn Black
moved from Minneapolis to Washington, DC, where Josh
was starting a new job. Josh drove the family car to Washington, DC, a trip of 1,100 miles. His expenses were
$209.00 for mileage (1,100 miles x 19 cents per mile) plus
$40 for tolls and $150 for lodging, for a total of $399.00.
One week later, Robyn flew from Minneapolis to Washington, DC. Her only expense was her $400 plane ticket. The
Publication 521 (2011)
Blacks’ deduction is $799.00 (Josh’s $399.00 + Robyn’s
$400).
Moves to Locations Outside the
United States
To deduct expenses for a move outside the United States,
you must move to the area of a new place of work outside
the United States and its possessions. You must meet the
requirements under Who Can Deduct Moving Expenses,
earlier.
Deductible expenses. If your move is to a location
outside the United States and its possessions, you can
deduct the following expenses.
• The cost of moving household goods and personal
effects from your former home to your new home.
• The cost of traveling (including lodging) from your
former home to your new home.
• The cost of moving household goods and personal
effects to and from storage.
• The cost of storing household goods and personal
effects while you are at the new job location.
The first two items were explained earlier under Moves to
Locations in the United States. The last two items are
discussed, later.
Moving goods and effects to and from storage. You
can deduct the reasonable expenses of moving your personal effects to and from storage.
Storage expenses. You can deduct the reasonable expenses of storing your household goods and personal
effects for all or part of the time the new job location
remains your main job location.
Moving expenses allocable to excluded foreign income. If you live and work outside the United States, you
may be able to exclude from income part or all of the
income you earn in the foreign country. You may also be
able to claim a foreign housing exclusion or deduction. If
you claim the foreign earned income or foreign housing
exclusion, you cannot deduct the part of your moving
expenses that relates to the excluded income.
Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, explains how to figure the part of your
moving expenses that relates to excluded income. You can
get the publication from most U.S. embassies and consulates, or see How To Get Tax Help at the end of this
publication.
Nondeductible Expenses
You cannot deduct the following items as moving expenses.
• Any part of the purchase price of your new home.
• Car tags.
Publication 521 (2011)
• Driver’s license.
• Expenses of buying or selling a home (including
closing costs, mortgage fees, and points).
•
•
•
•
•
•
•
•
•
•
Expenses of entering into or breaking a lease.
Home improvements to help sell your home.
Loss on the sale of your home.
Losses from disposing of memberships in clubs.
Mortgage penalties.
Pre-move househunting expenses.
Real estate taxes.
Refitting of carpet and draperies.
Return trips to your former residence.
Security deposits (including any given up due to the
move).
• Storage charges except those incurred in transit and
for foreign moves.
No double deduction. You cannot take a moving expense deduction and a business expense deduction for
the same expenses. You must decide if your expenses are
deductible as moving expenses or as business expenses.
For example, expenses you have for travel, meals, and
lodging while temporarily working at a place away from
your regular place of work may be deductible as business
expenses if you are considered away from home on business. In most cases, your work at a single location is
considered temporary if it is realistically expected to last
(and does in fact last) for one year or less.
See Publication 463, Travel, Entertainment, Gift, and
Car Expenses, for information on deducting your business
expenses.
Reimbursements
This section explains how to report a reimbursement (including advances and allowances) on your tax return. It
covers reimbursements for any of your moving expenses
discussed in this publication. It also explains the types of
reimbursements on which your employer must withhold
income, social security, and Medicare taxes.
Types of Reimbursement Plans
If you receive a reimbursement for your moving expenses,
how you report this amount and your expenses depends
on whether the reimbursement is paid to you under an
accountable plan or a nonaccountable plan. For a quick
overview of how to report your reimbursement and moving
expenses, see Table 2 in the section on How and When
To Report, later.
Your employer should tell you what method of reimbursement is used and what records are required.
Page 9
Accountable Plans
To be an accountable plan, your employer’s reimbursement arrangement must require you to meet all three of the
following rules.
• Your expenses must have a business connection –
that is, you must have paid or incurred deductible
expenses while performing services as an employee
of your employer. Two examples of this are the reasonable expenses of moving your possessions from
your former home to your new home, and traveling
from your former home to your new home.
• You must adequately account to your employer for
these expenses within a reasonable period of time.
• You must return any excess reimbursement or allowance within a reasonable period of time.
Adequate accounting. You adequately account for your
moving expenses by giving your employer documentation
of those expenses, such as a statement of expense, an
account book, a diary, or a similar record in which you
entered each expense at or near the time you had it.
Documentation includes receipts, canceled checks, and
bills.
Reasonable period of time. What constitutes a “reasonable period of time” depends on the facts and circumstances of your situation. However, regardless of the facts
and circumstances, actions that take place within the times
specified in the following list will be treated as taking place
within a reasonable period of time.
• You receive an advance within 30 days of the time
you have an expense.
• You adequately account for your expenses within 60
days after they were paid or incurred.
• You return any excess reimbursement within 120
days after the expense was paid or incurred.
• You are given a periodic statement (at least quar-
terly) that asks you to either return or adequately
account for outstanding advances and you comply
within 120 days of the statement.
Excess reimbursement. This includes any amount you
are paid (including advances and allowances) that is more
than the moving expenses that you adequately accounted
for to your employer within a reasonable period of time.
Returning excess reimbursements. You must be required to return any excess reimbursement for your moving expenses to the person paying the reimbursement.
Excess reimbursement includes any amount for which you
did not adequately account within a reasonable period of
time. For example, if you received an advance and you did
not spend all the money on deductible moving expenses,
or you do not have proof of all your expenses, you have an
excess reimbursement.
Page 10
You meet accountable plan rules. If for all reimbursements you meet the three rules for an accountable plan
(listed earlier), your employer should not include any reimbursements of expenses in your income in box 1 of your
Form W-2, Wage and Tax Statement. Instead, your employer should include the reimbursements in box 12 of your
Form W-2.
Example. You lived in Boston and accepted a job in
Atlanta. Under an accountable plan, your employer reimbursed you for your actual traveling expenses from Boston
to Atlanta and the cost of moving your furniture to Atlanta.
Your employer will include the reimbursement on your
Form W-2, box 12, with Code P. If your moving expenses
are more than your reimbursement, you may be able to
deduct your additional expenses (see How and When To
Report, later).
You do not meet accountable plan rules. You may be
reimbursed by your employer, but you may not meet all
three rules for part of your expenses.
If your deductible expenses are reimbursed under an
otherwise accountable plan but you do not return, within a
reasonable period, any reimbursement of expenses for
which you did not adequately account, then only the
amount for which you did adequately account is considered as paid under an accountable plan. The remaining
expenses are treated as having been reimbursed under a
nonaccountable plan (discussed below).
Reimbursement of nondeductible expenses. You may
be reimbursed by your employer for moving expenses,
some of which are deductible expenses and some of which
are not deductible. The reimbursements you receive for
the nondeductible expenses and any allowances for miscellaneous or unspecified expenses are treated as paid
under a nonaccountable plan (see below) and are included
in your income. If you are reimbursed by your employer for
the taxes you must pay (including social security and
Medicare taxes) because you have received taxable moving expense reimbursements, you must pay tax on this
reimbursement as well, and it is treated as paid under a
nonaccountable plan.
Nonaccountable Plans
A nonaccountable plan is a reimbursement arrangement
that does not meet the three rules listed earlier under
Accountable Plans.
In addition, the following payments will be treated as
paid under a nonaccountable plan.
• Excess reimbursements you fail to return to your
employer.
• Reimbursements of nondeductible expenses. See
Reimbursement of nondeductible expenses, earlier.
If an arrangement pays for your moving expenses by
reducing your wages, salary, or other pay, the amount of
the reduction will be treated as a payment made under a
nonaccountable plan. This is because you are entitled to
Publication 521 (2011)
receive the full amount of your pay regardless of whether
you had any moving expenses.
If you are not sure if the moving expense reimbursement
arrangement is an accountable or nonaccountable plan,
ask your employer.
Your employer will add the amount of any reimbursement paid to you under a nonaccountable plan to your
wages, salary, or other pay. Your employer will report the
total in box 1 of your Form W-2.
Example. To get you to work in another city, your new
employer reimburses you under an accountable plan for
the $7,500 loss on the sale of your home. Because this is a
reimbursement of a nondeductible expense, it is treated as
paid under a nonaccountable plan and must be included as
income in box 1 of your Form W-2.
Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970
Do not include in income any moving expense payment
you received under the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970. These
payments are made to persons displaced from their
homes, businesses, or farms by federal projects.
Tax Withholding and Estimated Tax
Your employer must withhold income, social security, and
Medicare taxes from reimbursements and allowances paid
to you that are included in your income. See Reimbursements included in income, later.
Reimbursements excluded from income. Your employer should not include in your wages reimbursements
paid under an accountable plan (explained earlier) for
moving expenses that you:
• Could deduct if you had paid or incurred them, and
• Did not deduct in an earlier year.
These reimbursements are fringe benefits excludable from
your income as qualified moving expense reimbursements. Your employer should report these reimbursements on your Form W-2, box 12, with Code P.
You cannot claim a moving expense deduction
for expenses covered by reimbursements exCAUTION
cluded from income (see Accountable Plans
under Types of Reimbursement Plans, earlier).
!
Expenses deducted in earlier year. If you receive a
reimbursement this year for moving expenses deducted in
an earlier year, and the reimbursement is not included as
wages in box 1 of your Form W-2, you must include the
reimbursement in income on line 21 of your Form 1040.
Your employer should show the amount of your reimbursement in box 12 of your Form W-2.
Reimbursements included in income. Your employer
must include in your income any reimbursements made (or
treated as made) under a nonaccountable plan, even
Publication 521 (2011)
though they are for deductible moving expenses. See
Nonaccountable Plans under Types of Reimbursement
Plans, earlier. Your employer also must include in your
gross income as wages any reimbursements of, or payments for, nondeductible moving expenses. This includes
amounts your employer reimbursed you under an accountable plan (explained earlier) for meals, househunting trips,
and real estate expenses. It also includes reimbursements
that exceed your deductible expenses and that you do not
return to your employer.
Reimbursement for deductible and nondeductible expenses. If your employer reimburses you for both deductible and nondeductible moving expenses, your employer
must determine the amount of the reimbursement that is
not taxable and not subject to withholding. Your employer
must treat any remaining amount as taxable wages and
withhold income, social security, and Medicare taxes.
Amount of income tax withheld. If the reimbursements
or allowances you receive are taxable, the amount of
income tax your employer will withhold depends on several
factors. It depends in part on whether income tax is withheld from your regular wages, on whether the reimbursements and allowances are added to your regular wages,
and on any information you have given to your employer
on Form W-4, Employee’s Withholding Allowance Certificate.
Your employer can treat your reimbursements as supplemental wages and not include the reimbursements and
allowances in your regular wages. The employer can withhold income tax on supplemental wages at a flat rate which
may be different from your regular tax rate.
Estimated tax. If you must make estimated tax payments,
you need to take into account any taxable reimbursements
and deductible moving expenses in figuring your estimated
tax. For details about estimated taxes, see Publication
505, Tax Withholding and Estimated Tax.
How and When To Report
This section explains how and when to report your moving
expenses and any reimbursements or allowances you
received for your move. For a quick overview, see Table 2,
later.
Form 3903
Use Form 3903 to figure your moving expense deduction.
Use a separate Form 3903 for each move for which you
are deducting expenses.
Do not file Form 3903 if all of the following apply.
• You moved to a location outside the United States in
an earlier year.
• You are claiming only storage fees while you were
away from the United States.
• Any amount your employer paid for the storage fees
is included as wages in box 1 of your Form W-2.
Page 11
Instead, enter the storage fees (after the reduction for the
part that is allocable to excluded income) on Form 1040,
line 26, and enter “Storage” on the dotted line next to the
amount.
If you meet the special rules for members of the Armed
Forces, see How to complete Form 3903 for members of
the Armed Forces under Members of the Armed Forces,
later.
Completing Form 3903. Complete Worksheet 1, earlier,
or the Distance Test Worksheet in the instructions for Form
3903 to see whether you meet the distance test. If so,
complete lines 1 through 3 of the form using your actual
expenses (except, if you use your own car, you can figure
expenses based on the standard mileage rate, instead of
actual amounts for gas and oil). Enter on line 4 the total
amount of your moving expense reimbursement that was
excluded from your wages. This excluded amount should
be identified on Form W-2, box 12, with code P.
Expenses greater than reimbursement. If line 3 is
more than line 4, subtract line 4 from line 3 and enter the
result on line 5 and on Form 1040, line 26. This is your
moving expense deduction.
Expenses equal to or less than reimbursement. If
line 3 is equal to or less than line 4, you have no moving
expense deduction. Subtract line 3 from line 4 and, if the
result is more than zero, include it as income on Form
1040, line 7.
Where to deduct. Deduct your moving expenses on
Form 1040, line 26. The amount of moving expenses you
can deduct is shown on Form 3903, line 5.
!
You cannot deduct moving expenses on Form
1040EZ or Form 1040A.
CAUTION
When To Deduct Expenses
You may have a choice of when to deduct your moving
expenses.
Expenses not reimbursed. If you were not reimbursed,
deduct your moving expenses in the year you paid or
incurred the expenses.
Example. In December 2010, your employer transferred you to another city in the United States, where you
still work. You are single and were not reimbursed for your
moving expenses. In 2010, you paid for moving your furniture and deducted these expenses on your 2010 tax return. In January 2011, you paid for travel to the new city.
You can deduct these additional expenses on your 2011
tax return.
Expenses reimbursed. If you are reimbursed for your
expenses and you use the cash method of accounting, you
can deduct your expenses either in the year you paid them
or in the year you received the reimbursement. If you use
the cash method of accounting, you can choose to deduct
the expenses in the year you are reimbursed even though
you paid the expenses in a different year. See Choosing
when to deduct, next.
If you deduct your expenses and you receive the reimbursement in a later year, you must include the reimbursement in your income on Form 1040, line 21.
Choosing when to deduct. If you use the cash method
of accounting, which is used by most individuals, you can
Table 2. Reporting Your Moving Expenses and Reimbursements
IF your Form W-2 shows...
AND you have...
THEN...
your reimbursement reported only
in box 12 with code P
moving expenses greater than the
amount in box 12
file Form 3903 showing all allowable
expenses* and reimbursements.
your reimbursement reported only
in box 12 with code P
moving expenses equal to the amount
in box 12
do not file Form 3903.
your reimbursement divided
between box 12 and box 1
moving expenses greater than the
amount in box 12
file Form 3903 showing all allowable
expenses,* but only the
reimbursements reported in box 12 of
Form W-2.
your entire reimbursement reported
as wages in box 1
moving expenses
file Form 3903 showing all allowable
expenses,* but do not show any
reimbursements.
no reimbursement
moving expenses
file Form 3903 showing all allowable
expenses.*
* See Deductible Moving Expenses, earlier, for allowable expenses.
Page 12
Publication 521 (2011)
choose to deduct moving expenses in the year your employer reimburses you if:
Motel rooms . . . . . . . . . . . . . .
Meals . . . . . . . . . . . . . . . . . . .
$1,450
2,280
3,730
• You paid the expenses in a year before the year of
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $43,172
• You paid the expenses in the year immediately after
Tom was reimbursed $10,797 under an accountable
plan. His employer gave him the following breakdown of
the reimbursement that was allowed under the employer’s
plan.
reimbursement, or
the year of reimbursement but by the due date, including extensions, for filing your return for the reimbursement year.
How to make the choice. You choose to deduct moving expenses in the year you received reimbursement by
taking the deduction on your return, or amended return, for
that year.
!
CAUTION
You cannot deduct any moving expenses for
which you received a reimbursement that was not
included in your income.
Illustrated Example
Tom and Peggy Smith are married and have two children.
They owned a home in Detroit where Tom worked. On
February 8, 2011, Tom’s employer told him that he would
be transferred to San Diego as of April 10 that year. Peggy
flew to San Diego on March 1 to look for a new home. She
put a down payment of $25,000 on a house being built and
returned to Detroit on March 4. The Smiths sold their
Detroit home for $1,500 less than they paid for it. They
contracted to have their personal effects moved to San
Diego on April 3. The family drove to San Diego where they
found that their new home was not finished. They stayed in
a nearby motel until the house was ready on May 1. On
April 10, Tom went to work in the San Diego plant where he
still works.
Their records for the move show:
1) Peggy’s pre-move househunting
trip:
Travel and lodging . . . . . . . . .
Meals . . . . . . . . . . . . . . . . . . .
$ 449
75
$
524
2) Down payment on San Diego
home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25,000
3) Real estate commission paid on
sale of Detroit home . . . . . . . . . . . . . . . . . . .
3,500
4) Loss on sale of Detroit home (not
including real estate commission) . . . . . . . . .
1,500
5) Amount paid for moving personal
effects (furniture, other household
goods, etc.) . . . . . . . . . . . . . . . . . . . . . . . . .
8,000
6) Expenses of driving to San Diego:
Mileage (Start 14,278;
End 16,478)
2,200 miles at 19 cents a mile
Lodging . . . . . . . . . . . . . . . . .
Meals . . . . . . . . . . . . . . . . . . .
7) Cost of temporary living
expenses in San Diego:
Publication 521 (2011)
$ 418
180
320
Moving personal effects . . . . . . . . . . . . . . . . .
Travel (and lodging) to San Diego . . . . . . . . . .
Travel (and lodging) for househunting trip . . . .
Lodging for temporary quarters . . . . . . . . . . . .
Loss on sale of home . . . . . . . . . . . . . . . . . . .
$ 6,800
598
449
1,450
1,500
Total reimbursement . . . . . . . . . . . . . . . . . . . .
$10,797
The employer included this reimbursement on Tom’s
Form W-2 for the year. The reimbursement of allowable
expenses, $7,398 for moving household goods and travel
to San Diego, was included in box 12 of Form W-2. His
employer identified this amount with code P.
The employer included the balance, $3,399 reimbursement of nonallowable expenses, in box 1 of Form W-2 with
Tom’s other wages. Tom must include this amount on
Form 1040, line 7. The employer withholds taxes from the
$3,399, as discussed under Reimbursement for deductible
and nondeductible expenses under Tax Withholding and
Estimated Tax, earlier. Also, Tom’s employer could have
given him a separate Form W-2 for his moving expense
reimbursement.
To figure his tax deduction for moving expenses, Tom
enters the following amounts on Form 3903.
Item 5 — moving personal effects (line 1) . . . . .
$8,000
Item 6 — driving to San Diego ($418 + $180)
(line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
598
Total tax deductible moving expenses (line 3) . .
$8,598
Minus: Reimbursement included in box 12
of Form W-2 (line 4) . . . . . . . . . . . . . . . . . . .
7,398
Tax deduction for moving expenses (line 5) . . .
$1,200
Tom’s Form 3903 is shown, later. He also enters his
deduction, $1,200, on Form 1040, line 26.
Nondeductible expenses. Of the $43,172 expenses that
Tom and Peggy incurred, the following items totaling
$34,574 ($43,172 – $8,598) cannot be deducted.
• Item 1 — pre-move househunting expenses of
$524.
• Item 2 — the $25,000 down payment on the San
Diego home. If any part of it were for payment of
deductible taxes or interest on the mortgage on the
house, that part would be deductible as an itemized
deduction.
918
• Item 3 — the $3,500 real estate commission paid on
the sale of the Detroit home. The commission is
used to figure the gain or loss on the sale.
Page 13
• Item 4 — the $1,500 loss on the sale of the Detroit
home.
• Item 7 — temporary living expenses of $3,730.
• Item 6 — the $320 expense for meals while driving
to San Diego. (However, the lodging and car expenses are deductible.)
Form
3903
OMB No. 1545-0074
Moving Expenses
Department of the Treasury
Internal Revenue Service (99)
▶
2011
Attachment
Sequence No. 170
Attach to Form 1040 or Form 1040NR.
Your social security number
Name(s) shown on return
Tom and Peggy Smith
325-00-6437
Before you begin:
✓ See the Distance Test and Time Test in the instructions to find out if you can deduct your moving
expenses.
✓ See Members of the Armed Forces in the instructions, if applicable.
Transportation and storage of household goods and personal effects (see instructions) . . .
Travel (including lodging) from your old home to your new home (see instructions). Do not
include the cost of meals . . . . . . . . . . . . . . . . . . . . . . . .
1
8,000
2
598
3
Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . .
3
8,598
4
Enter the total amount your employer paid you for the expenses listed on lines 1 and 2 that is
not included in box 1 of your Form W-2 (wages). This amount should be shown in box 12 of your
Form W-2 with code P . . . . . . . . . . . . . . . . . . . . . . . .
4
7,398
1
2
5
Is line 3 more than line 4?
No.
You cannot deduct your moving expenses. If line 3 is less than line 4, subtract line 3
from line 4 and include the result on Form 1040, line 7, or Form 1040NR, line 8.
Yes. Subtract line 4 from line 3. Enter the result here and on Form 1040, line 26, or Form
1040NR, line 26. This is your moving expense deduction . . . . . . . . .
For Paperwork Reduction Act Notice, see your tax return instructions.
Cat. No. 12490K
Page 14
5
1,200
Form 3903 (2011)
Publication 521 (2011)
Members of the Armed Forces
If you are a member of the Armed Forces on active duty
and you move because of a permanent change of station,
you do not have to meet the distance and time tests,
discussed earlier. You can deduct your unreimbursed
moving expenses.
A permanent change of station includes:
• A move from your home to your first post of active
duty,
• A move from one permanent post of duty to another,
and
• A move from your last post of duty to your home or
to a nearer point in the United States. The move
must occur within one year of ending your active
duty or within the period allowed under the Joint
Travel Regulations.
Spouse and dependents. If a member of the Armed
Forces dies, is imprisoned, or deserts, a permanent
change of station for the spouse or dependent includes a
move to:
• The place of enlistment,
• The member’s, spouse’s, or dependent’s home of
record, or
• A nearer point in the United States.
If the military moves you, your spouse, and dependents,
to or from separate locations, the moves are treated as a
single move to your new main job location.
Services or reimbursements provided by government.
Do not include in income the value of moving and storage
services provided by the government because of a permanent change of station. In general, if the total reimbursements or allowances you receive from the government
because of the move are more than your actual moving
expenses, the government must include the excess in your
wages on Form W-2. However, the excess portion of a
dislocation allowance, a temporary lodging allowance, a
temporary lodging expense, or a move-in housing allowance is not included in income and should not be included
in box 1 of Form W-2.
If your reimbursements or allowances are less than your
actual moving expenses, do not include the reimbursements or allowances in income. You can deduct the expenses that are more than your reimbursements. See
Deductible Moving Expenses, earlier.
How to complete Form 3903 for members of the Armed
Forces. Take the following steps.
1. Complete lines 1 through 3 of the form, using your
actual expenses. Do not include any expenses for
moving services provided by the government. Also,
do not include any expenses that were reimbursed
by an allowance you do not have to include in your
income.
Publication 521 (2011)
2. Enter on line 4 the total reimbursements and allowances you received from the government for the
expenses claimed on lines 1 and 2. Do not include
the value of moving or storage services provided by
the government. Also, do not include any part of a
dislocation allowance, a temporary lodging allowance, a temporary lodging expense, or a move-in
housing allowance.
3. Complete line 5. If line 3 is more than line 4, subtract
line 4 from line 3 and enter the result on line 5 and
on Form 1040, line 26. This is your moving expense
deduction. If line 3 is equal to or less than line 4, you
do not have a moving expense deduction. Subtract
line 3 from line 4 and, if the result is more than zero,
enter it on Form 1040, line 7.
If the military moves you, your spouse and dependents, to
or from different locations, treat these moves as a single
move.
!
Do not deduct any expenses for moving or storage services provided by the government.
CAUTION
How To Get Tax Help
You can get help with unresolved tax issues, order free
publications and forms, ask tax questions, and get information from the IRS in several ways. By selecting the method
that is best for you, you will have quick and easy access to
tax help.
Free help with your return. Free help in preparing your
return is available nationwide from IRS-certified volunteers. The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income taxpayers
and the Tax Counseling for the Elderly (TCE) program is
designed to assist taxpayers age 60 and older with their
tax returns. Most VITA and TCE sites offer free electronic
filing and all volunteers will let you know about credits and
deductions you may be entitled to claim. To find the nearest VITA or TCE site, visit IRS.gov or call 1-800-906-9887
or 1-800-829-1040.
As part of the TCE program, AARP offers the Tax-Aide
counseling program. To find the nearest AARP Tax-Aide
site, call 1-888-227-7669 or visit AARP’s website at
www.aarp.org/money/taxaide.
For more information on these programs, go to IRS.gov
and enter keyword “VITA” in the upper right-hand corner.
Internet. You can access the IRS website at
IRS.gov 24 hours a day, 7 days a week to:
• Check the status of your 2011 refund. Go to IRS.gov
and click on Where’s My Refund. Wait at least 72
hours after the IRS acknowledges receipt of your
e-filed return, or 3 to 4 weeks after mailing a paper
return. If you filed Form 8379 with your return, wait
14 weeks (11 weeks if you filed electronically). Have
Page 15
your 2011 tax return available so you can provide
your social security number, your filing status, and
the exact whole dollar amount of your refund.
• E-file your return. Find out about commercial tax
preparation and e-file services available free to eligible taxpayers.
• Download forms, including talking tax forms, instructions, and publications.
•
•
•
•
Order IRS products online.
Research your tax questions online.
Search publications online by topic or keyword.
Use the online Internal Revenue Code, regulations,
or other official guidance.
• View Internal Revenue Bulletins (IRBs) published in
the last few years.
• Figure your withholding allowances using the with-
holding calculator online at www.irs.gov/individuals.
• Determine if Form 6251 must be filed by using our
Alternative Minimum Tax (AMT) Assistant available
online at www.irs.gov/individuals.
• Sign up to receive local and national tax news by
email.
• Get information on starting and operating a small
business.
Phone. Many services are available by phone.
• Ordering forms, instructions, and publications. Call
1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and
prior-year forms and instructions. You should receive
your order within 10 days.
• Asking tax questions. Call the IRS with your tax
questions at 1-800-829-1040.
• Solving problems. You can get face-to-face help
solving tax problems every business day in IRS Taxpayer Assistance Centers. An employee can explain
IRS letters, request adjustments to your account, or
help you set up a payment plan. Call your local
Taxpayer Assistance Center for an appointment. To
find the number, go to www.irs.gov/localcontacts or
look in the phone book under United States Government, Internal Revenue Service.
• TTY/TDD equipment. If you have access to TTY/
TDD equipment, call 1-800-829-4059 to ask tax
questions or to order forms and publications.
• TeleTax topics. Call 1-800-829-4477 to listen to
pre-recorded messages covering various tax topics.
• Refund information. You can check the status of
your refund on the new IRS phone app . Download
Page 16
the free IRS2Go app by visiting the iTunes app store
or the Android Marketplace. IRS2Go is a new way to
provide you with information and tools. To check the
status of your refund by phone, call 1-800-829-4477
(automated refund information 24 hours a day, 7
days a week). Wait at least 72 hours after the IRS
acknowledges receipt of your e-filed return, or 3 to 4
weeks after mailing a paper return. If you filed Form
8379 with your return, wait 14 weeks (11 weeks if
you filed electronically). Have your 2011 tax return
available so you can provide your social security
number, your filing status, and the exact whole dollar
amount of your refund. If you check the status of
your refund and are not given the date it will be
issued, please wait until the next week before checking back.
• Other refund information. To check the status of a
prior-year refund or amended return refund, call
1-800-829-1040.
Evaluating the quality of our telephone services. To
ensure IRS representatives give accurate, courteous, and
professional answers, we use several methods to evaluate
the quality of our telephone services. One method is for a
second IRS representative to listen in on or record random
telephone calls. Another is to ask some callers to complete
a short survey at the end of the call.
Walk-in. Many products and services are available on a walk-in basis.
• Products.You can walk in to many post offices, li-
braries, and IRS offices to pick up certain forms,
instructions, and publications. Some IRS offices, libraries, grocery stores, copy centers, city and county
government offices, credit unions, and office supply
stores have a collection of products available to print
from a CD or photocopy from reproducible proofs.
Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue
Bulletins, and Cumulative Bulletins available for research purposes.
• Services. You can walk in to your local Taxpayer
Assistance Center every business day for personal,
face-to-face tax help. An employee can explain IRS
letters, request adjustments to your tax account, or
help you set up a payment plan. If you need to
resolve a tax problem, have questions about how the
tax law applies to your individual tax return, or you
are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center
where you can spread out your records and talk with
an IRS representative face-to-face. No appointment
is necessary —just walk in. If you prefer, you can call
your local Center and leave a message requesting
an appointment to resolve a tax account issue. A
representative will call you back within 2 business
days to schedule an in-person appointment at your
convenience. If you have an ongoing, complex tax
Publication 521 (2011)
account problem or a special need, such as a disability, an appointment can be requested. All other
issues will be handled without an appointment. To
find the number of your local office, go to
www.irs.gov/localcontacts or look in the phone book
under United States Government, Internal Revenue
Service.
Mail. You can send your order for forms, instructions, and publications to the address below. You
should receive a response within 10 days after
your request is received.
Internal Revenue Service
1201 N. Mitsubishi Motorway
Bloomington, IL 61705-6613
Taxpayer Advocate Service. The Taxpayer Advocate
Service (TAS) is your voice at the IRS. Our job is to ensure
that every taxpayer is treated fairly, and that you know and
understand your rights. We offer free help to guide you
through the often-confusing process of resolving tax
problems that you haven’t been able to solve on your own.
Remember, the worst thing you can do is nothing at all.
certain level and who need to resolve a tax problem. These
clinics provide professional representation before the IRS
or in court on audits, appeals, tax collection disputes, and
other issues for free or for a small fee. Some clinics can
provide information about taxpayer rights and responsibilities in many different languages for individuals who speak
English as a second language. For more information and
to find a clinic near you, see the LITC page on www.irs.gov/
advocate or IRS Publication 4134, Low Income Taxpayer
Clinic List. This publication is also available by calling
1-800-829-3676 or at your local IRS office.
Free tax services. Publication 910, IRS Guide to Free
Tax Services, is your guide to IRS services and resources.
Learn about free tax information from the IRS, including
publications, services, and education and assistance programs. The publication also has an index of over 100
TeleTax topics (recorded tax information) you can listen to
on the telephone. The majority of the information and
services listed in this publication are available to you free
of charge. If there is a fee associated with a resource or
service, it is listed in the publication.
Accessible versions of IRS published products are
available on request in a variety of alternative formats for
people with disabilities.
DVD for tax products. You can order Publication
1796, IRS Tax Products DVD, and obtain:
TAS can help if you can’t resolve your problem with the
IRS and:
• Your problem is causing financial difficulties for you,
your family, or your business.
• You face (or your business is facing) an immediate
threat of adverse action.
• You have tried repeatedly to contact the IRS but no
one has responded, or the IRS has not responded to
you by the date promised.
If you qualify for our help, we’ll do everything we can to
get your problem resolved. You will be assigned to one
advocate who will be with you at every turn. We have
offices in every state, the District of Columbia, and Puerto
Rico. Although TAS is independent within the IRS, our
advocates know how to work with the IRS to get your
problems resolved. And our services are always free.
As a taxpayer, you have rights that the IRS must abide
by in its dealings with you. Our tax toolkit at www.
TaxpayerAdvocate.irs.gov can help you understand these
rights.
If you think TAS might be able to help you, call your local
advocate, whose number is in your phone book and on our
website at www.irs.gov/advocate. You can also call our
toll-free number at 1-877-777-4778.
TAS also handles large-scale or systemic problems that
affect many taxpayers. If you know of one of these broad
issues, please report it to us through our Systemic Advocacy Management System at www.irs.gov/advocate.
•
•
•
•
•
Current-year forms, instructions, and publications.
Prior-year forms, instructions, and publications.
Tax Map: an electronic research tool and finding aid.
Tax law frequently asked questions.
Tax Topics from the IRS telephone response system.
• Internal Revenue Code—Title 26 of the U.S. Code.
• Links to other Internet based Tax Research materials.
•
•
•
•
Fill-in, print, and save features for most tax forms.
Internal Revenue Bulletins.
Toll-free and email technical support.
Two releases during the year.
– The first release will ship the beginning of January
2012.
– The final release will ship the beginning of March
2012.
Purchase the DVD from National Technical Information
Service (NTIS) at www.irs.gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD
for $30 (plus a $6 handling fee).
Low Income Taxpayer Clinics (LITCs). Low Income
Taxpayer Clinics (LITCs) are independent from the IRS.
Some clinics serve individuals whose income is below a
Publication 521 (2011)
Page 17
Index
To help us develop a more useful index, please let us know if you have ideas for index entries.
See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.
A
F
N
Absence, temporary . . . . . . . . . . . . 5, 6
Accountable plans . . . . . . . . . . . . . . . 10
Address, change of . . . . . . . . . . . . . . . 1
Adequate accounting . . . . . . . . . . . . 10
Armed Forces . . . . . . . . . . . . . . . . . 2, 15
Distance test, special rule . . . . . . . 4
Form 3903, how to
complete . . . . . . . . . . . . . . . . . . . . . 15
Services or reimbursements
provided by government . . . . . . 15
Spouse and dependents . . . . . . . . 15
Assistance (See Tax help)
Nonaccountable plans . . . . . . . . . . 10
Nondeductible expenses . . . . . . . . . 9
Reimbursements of . . . . . . . . . 10, 11
Change of address . . . . . . . . . . . . . . . 1
Closely related in place . . . . . . . . . . 3
Closely related in time . . . . . . . . . . . . 3
Figures (See Tables and figures)
First job . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Form 1040:
Moving expense deduction . . . . . 12
Form 3903:
Armed Forces members, how to
complete . . . . . . . . . . . . . . . . . . . . . 15
Completing form . . . . . . . . . . . . . . . . 12
Moving expense deduction
calculation . . . . . . . . . . . . . . . . . . . . 11
Form W-2:
Reimbursements . . . . . . . . . . . 10, 11
Government provided for Armed
Forces members . . . . . . . . . . . 15
Form W-4:
Withholding allowance . . . . . . . . . . 11
Free tax services . . . . . . . . . . . . . . . . 15
Full-time work, defined . . . . . . . . . . . 6
D
H
C
Deductible moving
expenses . . . . . . . . . . . . . . . . . . . . . 7-9
Household goods . . . . . . . . . . . . . . . . 8
Moving to and from
storage . . . . . . . . . . . . . . . . . . . . . . 9
Member of your household . . . . . . 8
Moves in U.S. . . . . . . . . . . . . . . . . . . . 8
Moves outside U.S. . . . . . . . . . . . . . . 9
Moving expenses allocable to
excluded foreign income . . . . . . 9
Personal effects . . . . . . . . . . . . . . . . . 8
Moving to and from
storage . . . . . . . . . . . . . . . . . . . . . . 9
Reasonable expenses . . . . . . . . . . . 8
Storage expenses . . . . . . . . . . . . . 8, 9
Travel by car . . . . . . . . . . . . . . . . . . . . . 8
Travel expenses . . . . . . . . . . . . . . . . . 8
Distance test . . . . . . . . . . . . . . . . . . . . . . 3
Armed Forces, special rule . . . . . . 4
First job . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Illustration of (Figure A) . . . . . . . . . . 3
Main job location . . . . . . . . . . . . . . . . . 4
Return to full-time work . . . . . . . . . . 4
Worksheet 1 . . . . . . . . . . . . . . . . . . . . . 4
E
Employees:
Time test for . . . . . . . . . . . . . . . . . . . . . 4
Estimated tax . . . . . . . . . . . . . . . . . . . . 11
Excess reimbursements . . . . . . . . . 10
Excluded foreign income:
Moving expenses allocable to . . . 9
Page 18
Help (See Tax help)
Home, defined . . . . . . . . . . . . . . . . . . . . 3
Household goods . . . . . . . . . . . . . . . . . 8
Moving to and from storage . . . . . . 9
I
Important reminders . . . . . . . . . . . . . . 1
J
Joint returns . . . . . . . . . . . . . . . . . . . . . . 6
M
Main job location:
Defined . . . . . . . . . . . . . . . . . . . . . . . . . . 4
More than one job . . . . . . . . . . . . . . . 4
Union members . . . . . . . . . . . . . . . . . . 4
Member of household . . . . . . . . . . . . 8
Members of Armed Forces (See
Armed Forces)
Mileage rate . . . . . . . . . . . . . . . . . . . . . . . 1
Missing children, photographs
of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
More information (See Tax help)
Moves:
In U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Outside U.S. . . . . . . . . . . . . . . . . . . . . . 9
To and from storage . . . . . . . . . . . . . 9
Moving expenses (See also
Deductible moving expenses; Who
can deduct) . . . . . . . . . . . . . . . . . . . . 2, 7
P
Permanently retired, defined . . . . . 7
Personal effects . . . . . . . . . . . . . . . . . . 8
Moving to and from storage . . . . . . 9
Publications (See Tax help)
R
Reasonable expenses . . . . . . . . . . . . 8
Reasonable period of time . . . . . . 10
Reimbursements . . . . . . . . . . . . . . 9-11
Accountable plans . . . . . . . . . . . . . . 10
Adequate accounting . . . . . . . . . . . 10
Armed Forces members . . . . . . . . 15
Estimated tax . . . . . . . . . . . . . . . . . . . 11
Excess . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Excluded from income . . . . . . . . . . 11
Included in income . . . . . . . . . . . . . . 11
Nonaccountable plans . . . . . . . . . . 10
Nondeductible expenses . . . . . . 10,
11
Reasonable period of time . . . . . . 10
Reporting moving expenses and
reimbursements (Table 2) . . . . 11
Types of plans . . . . . . . . . . . . . . . . . . . 9
Reporting expenses . . . . . . . . . . . . . 11
Expenses equal to or less than
reimbursement . . . . . . . . . . . . . . . 12
Expenses greater than
reimbursement . . . . . . . . . . . . . . . 12
Form 3903, deduction
calculation . . . . . . . . . . . . . . . . . . . . 11
Moving expenses and
reimbursements (Table 2) . . . . 11
Retirees who move to U.S. . . . . . 2, 3
Permanently retired, defined . . . . . 7
Return to full-time work . . . . . . . . . . 4
S
Seasonal trade or business . . . . . . 6
Seasonal work . . . . . . . . . . . . . . . . . . . . 5
Self-employed persons:
Time test . . . . . . . . . . . . . . . . . . . . . . 5, 6
Table 1 . . . . . . . . . . . . . . . . . . . . . . . . 4
Spouse of Armed Forces
member . . . . . . . . . . . . . . . . . . . . . . . . 15
Standard mileage rate . . . . . . . . . . . . 1
Storage expenses . . . . . . . . . . . . . . 8, 9
Publication 521 (2011)
Survivors who move to U.S. . . . . . 2,
3, 7
When move begins . . . . . . . . . . . . . . 7
T
Tables and figures:
Distance test . . . . . . . . . . . . . . . . . . . . . 3
Nonmilitary move within U.S., can
you deduct expenses (Figure
B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Reporting moving expenses and
reimbursements (Table 2) . . . . 11
Time test, satisfying for employees
and self-employed persons
(Table 1) . . . . . . . . . . . . . . . . . . . . . . 4
Tax help . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Taxpayer Advocate . . . . . . . . . . . . . . 17
Temporary absence . . . . . . . . . . . . 5, 6
Time test . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Employees . . . . . . . . . . . . . . . . . . . . . . 4
Exceptions to . . . . . . . . . . . . . . . . . . . . 7
Full-time work . . . . . . . . . . . . . . . . . . . . 6
Joint return . . . . . . . . . . . . . . . . . . . . . . 6
Not yet met . . . . . . . . . . . . . . . . . . . . . . 6
Publication 521 (2011)
Satisfying for employees and
self-employed persons (Table
1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Seasonal trade or business . . . . . . 6
Seasonal work . . . . . . . . . . . . . . . . . . . 5
Self-employed persons . . . . . . . . 5, 6
Temporary absence from
work . . . . . . . . . . . . . . . . . . . . . . . . . 5, 6
Travel by car . . . . . . . . . . . . . . . . . . . . . . 8
Travel expenses . . . . . . . . . . . . . . . . . . 8
TTY/TDD information . . . . . . . . . . . . 15
U
Uniform Relocation Assistance
and Real Property Acquisition
Policies Act of 1970 . . . . . . . . . . . 11
Unions:
Main job location of member . . . . . 4
Expenses not reimbursed . . . . . . . 12
Expenses reimbursed . . . . . . . . . . 12
How to make choice . . . . . . . . . . . . 13
Who can deduct . . . . . . . . . . . . . . . . 2-7
Armed Forces, members of . . . . . . 2
Distance test . . . . . . . . . . . . . . . . . . . . . 3
Nonmilitary move within U.S.
(Figure B) . . . . . . . . . . . . . . . . . . . . . 5
Related to start of work . . . . . . . . . . 3
Retirees who move to U.S. . . . . . . 2,
3, 7
Survivors who move to U.S. . . . . . 2,
3, 7
Time test . . . . . . . . . . . . . . . . . . . . . . . . 4
Withholding . . . . . . . . . . . . . . . . . . . . . . 11
Worksheet:
Distance test (Worksheet 1) . . . . . 4
■
W
When to deduct
expenses . . . . . . . . . . . . . . . . . . . 12-14
Choosing when to deduct . . . . . . . 12
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